True/False
If the spending multiplier is 8, then the marginal propensity to consume must be 7/8.
Correct Answer:

Verified
Correct Answer:
Verified
Q154: Figure 34-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 34-9
Q155: A severe problem that many economists have
Q156: Fiscal policy refers to the idea that
Q157: When the interest rate is above equilibrium,
Q158: Figure 34-12 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 34-12
Q160: Suppose that consumers become pessimistic about the
Q161: Figure 34-7<br>(a) The Money Market<br>(b) The Aggregate
Q162: Figure 34-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 34-4
Q163: It is likely that a constitutional amendment
Q164: A decrease in taxes will shift aggregate